Governor George E. Pataki and
United States Secretary of the Treasury John W. Snow today announced a new initiative that
will offer affordable quality health insurance coverage to eligible New Yorkers whose
employment has been displaced due to changes in foreign trade or whose pensions have been
taken over by the Pension Benefit Guarantee Corporation (PBGC). Eligible New Yorkers will
be given access to the Healthy NY benefits package along with a 65% federal Health
Coverage Tax Credit to assist them in paying the premium.

"This is great news for
qualifying former Bethlehem Steel, Alcoa, Ethan Allen, Nestle, Oneida Limited, UNITE union
workers, and other hard working men and women of New York who have been displaced by
changes in foreign trade and eligible retirees in need of affordable health insurance
coverage," Governor Pataki said. "The State of New York is committed to quality
health care for all of its residents. This initiative will provide these individuals with
an option of having comprehensive, affordable health insurance coverage for themselves and
their families."

"Every American deserves
to have good health care," said Secretary Snow. "A lot of folks in steel and
other important industries have helped build this country, to make it as strong as it is.
The federal Health Coverage Tax Credit is one way we can give back to them. Its a
bold step in the direction of affordable health care for all Americans. New Yorks
leaders are on the forefront of health care policy innovation, and New Yorkers, especially
those who need some extra help right now, are going to be the beneficiaries."

New Yorkers receiving Trade
Adjustment Assistance (TAA) benefits or PBGC pension benefit payments will qualify for the
65% federal health coverage tax credit (HCTC). The federal tax credit can be applied
towards the purchase of qualifying health insurance. New York now has two health insurance
products that qualify for the credit, Healthy NY and HCTC Healthy NY.

"Through regulatory
changes that qualify the Healthy NY program for this federal tax credit, even more New
Yorkers will now have access to Healthy NYs comprehensive streamlined benefit
package," said Superintendent of Insurance Gregory V. Serio. "Under Governor
Patakis leadership and through the cooperation of New Yorks health plans,
those eligible will now qualify for the federal tax credit while receiving comprehensive
health benefits."

State Labor Commissioner Linda
Angello said, "Governor Pataki and I believe in protecting the integrity of New York
States workforce, and this new health coverage initiative will help ensure that
hundreds of New Yorks families are taken care of during often stressful and
difficult times."

Healthy NY is a state funded
health insurance program available to uninsured individuals meeting certain income and
eligibility requirements. Healthy NY can be purchased from any HMO in the State. Those who
do not qualify for the state funded Healthy NY program can apply their federal tax credit
towards purchasing HCTC Healthy NY. HCTC Healthy NY is currently available in 39 Upstate
counties through Excellus Health Plan and will soon be available in Western New York
through Independent Health and statewide through Group Health Incorporated (GHI). GHI will
begin accepting applications in July.

The Health Coverage Tax Credit
was created by the Federal Trade Adjustment Assistance Reform Act of 2002 (TAA). Because
this federal tax credit is fully refundable, it may be claimed even if no federal income
tax is owed. Eligible New Yorkers can get this assistance in two ways. The credit can be
claimed on their federal tax forms in a lump sum next year on April 15th and
beginning on August 1, the Health Coverage Tax Credit program will allow these individuals
and their families to directly apply the credit to their health insurance premiums every
month. This advance payment option could make a big difference for families that are just
getting by month-to-month or week-to-week. Potentially eligible individuals will receive
HCTC enrollment kits by mail shortly.

More information on the Healthy
NY is available at www.HealthyNY.com or the Healthy NY hotline at 1-866-Healthy NY.
Additionally, the NYS Department of Insurance consumer hotline can be reached at
1-800-342-3736. More information about the federal tax credit can be obtained by visiting
www.irs.gov (IRS keyword HCTC) or toll-free at 1-866-628-HCTC (1-866-628-4282).